Published: Thursday, September 12, 2013 at 8:23 a.m.

Last Modified: Thursday, September 12, 2013 at 11:57 a.m.

Four days after Michael Krause was charged with impaired driving in Wilmington for the second time, he is out of a job.

Krause, who had been CEO of the Wilmington Housing Authority for five years, was released from his contract Thursday morning at a special meeting of the authority's board of commissioners.

The board voted 8-1 to release Krause without cause, which entitles him to three months of pay and benefits.

After the meeting, Jeff Hovis, board chairman, declined to answer questions but did briefly address reporters.

"Michael Krause has done incredible things for this community and that should not be forgotten," Hovis said. "The situation and personal crisis – we wish him the best and hope that everyone else would provide him the privacy and the support he deserves. This has been a difficult decision and we as an authority know our obligation to our staff, to the community, to our residents, and that is our No. 1 concern."

Krause did not return a phone message Thursday. Helayne Levy, the sole board member to vote against firing Krause without cause, also did not return a message.

Krause, 41, had a breath-alcohol level about four times above the legal limit Sunday before he was charged with impaired driving, according to dispatch logs. After the arrest, Krause took a leave of absence, though it is unclear if that was paid or unpaid.

Thursday's vote to fire Krause came after the board emerged from a closed session that lasted about an hour and 45 minutes. The board then unanimously appointed Vernice Hamilton, the authority's human resources director, as interim CEO.

Krause, who started as CEO in 2008 and earned $142,000 annually, had been under a three-year contract that would have expired on Dec. 31, 2014.

In a 2011 StarNews profile, Krause pointed out his successes after being handed a full plate of poor financial dealings when he took over. "We were able to clean up all the messes," Krause said at the time. "This agency was plagued with audit finding after audit finding and we don't have any audit findings anymore."

On Thursday afternoon, Wilmington Mayor Bill Saffo praised Krause for righting the agency and moving it in what he called the right direction.

"That's the tragic part of this whole thing," Saffo said. "He has done a very good job."

In addition to financial management, Saffo also acknowledged Krause's effort to upgrade public housing, including a massive overhaul of Creekwood South and making improvements at Solomon Towers. Recently, the authority announced it had secured funding to redevelop another aging housing site, Rankin Terrace.

Still, Saffo said he supported the board's decision to fire Krause, noting that the latest incident came on top of his 2009 arrest.

"I believe that he left the board no other decision but that decision," the mayor said.

The board had the power to end its contract with Krause with or without cause. According to the contract, Krause could be fired for cause for multiple reasons: death or incapacity; if he is convicted of criminal conduct other than a misdemeanor traffic violation; if he is absent from work for more than 20 business days without approval; if the board evaluation determines his performance is unsatisfactory; or if he willfully neglects or fails to perform his duties under the agreement.

Ultimately, the board opted to fire him without cause, which means he is entitled to three months of pay and benefits. His salary for three months would be about $35,000.

Thursday's closed session was reminiscent of what happened after Krause's 2009 impaired driving arrest. But after that meeting, then-board Chairwoman Lethia Hankins said the board had "complete confidence" in his ability to lead.

Several weeks after that meeting, Krause received a $15,000 raise, boosting his salary to $125,000, plus a $15,000 bonus. In 2011, the board gave Krause a $17,000 bump, bringing him to $142,000.

Now that Krause is out, the authority's board has a big job ahead in picking a new CEO, said Saffo, who appoints the board's members.

"They had some momentum there," Saffo said. "It's going to definitely be a setback, but I hope it's just a bump in the road."

Krause's Sunday arrest was prompted by a driver who called 911 shortly after 3 p.m.

In the 911 recording, a man tells a dispatcher that a white Toyota 4Runner was swerving all over the road. The caller follows the SUV along Oleander Drive, Military Cutoff Road and eventually to a house on Windemere Road, where Krause lives.

The caller initially tells the dispatcher the SUV was on Oleander Drive headed toward Wrightsville Beach.

"He just almost ran someone else off the road," the caller said. He says the SUV had been swerving toward the center line and the edge of the road.

The caller followed the SUV onto Military Cutoff Road, where he said the SUV nearly rear-ended another car. Eventually, the SUV turns into a development just north of Mayfaire, when the caller says the driver cut off someone in traffic and almost hit that vehicle. Eventually, the caller followed the 4Runner onto Windemere Road, when he passed the phone to a woman in his car. She said the erratic driver turned off the road at a house.

Before Krause's arrest on Sunday, Wilmington police officers reported three separate breath-alcohol readings: 0.35, 0.31 and 0.31, according to dispatch logs. The threshold for being considered impaired is 0.08. The tests were taken between 3:51 p.m. and 4:14 p.m., according to the logs, which are written records of communications involving the 911 dispatch center.

Police officials have said Krause was later administered a blood test, but have declined to release those results until after the court case. Krause was also cited with having no operator's license.

Krause pleaded guilty to an earlier impaired driving charge in January 2010.

In 2009, police stopped Krause on Eastwood Road after watching him weaving in the traffic lane and stopping twice for no reason, according to court documents. At that time, Krause registered a 0.23 on a breath-alcohol test, according to the documents.

In January 2011, Krause pleaded no contest to disorderly conduct in Hancock County, W.Va., according to The Review, an Ohio newspaper. The case was dismissed on a charge of public intoxication, according to the newspaper. He was fined $100 and court costs, it said.

<p>Four days after Michael Krause was charged with impaired driving in Wilmington for the second time, he is out of a job.</p><p>Krause, who had been CEO of the <a href="http://www.starnewsonline.com/section/topic31"><b>Wilmington Housing Authority</b></a> for five years, was released from his contract Thursday morning at a special meeting of the authority's board of commissioners.</p><p>The board voted 8-1 to release Krause without cause, which entitles him to three months of pay and benefits.</p><p>After the meeting, Jeff Hovis, board chairman, declined to answer questions but did briefly address reporters. </p><p>"Michael Krause has done incredible things for this community and that should not be forgotten," Hovis said. "The situation and personal crisis – we wish him the best and hope that everyone else would provide him the privacy and the support he deserves. This has been a difficult decision and we as an authority know our obligation to our staff, to the community, to our residents, and that is our No. 1 concern."</p><p>Krause did not return a phone message Thursday. Helayne Levy, the sole board member to vote against firing Krause without cause, also did not return a message. </p><p>Krause, 41, had a breath-alcohol level about four times above the legal limit Sunday before he was charged with impaired driving, according to dispatch logs. After the arrest, Krause took a leave of absence, though it is unclear if that was paid or unpaid.</p><p>Thursday's vote to fire Krause came after the board emerged from a closed session that lasted about an hour and 45 minutes. The board then unanimously appointed Vernice Hamilton, the authority's human resources director, as interim CEO. </p><p>Krause, who started as CEO in 2008 and earned $142,000 annually, had been under a three-year contract that would have expired on Dec. 31, 2014. </p><p>In a 2011 StarNews profile, Krause pointed out his successes after being handed a full plate of poor financial dealings when he took over. "We were able to clean up all the messes," Krause said at the time. "This agency was plagued with audit finding after audit finding and we don't have any audit findings anymore."</p><p>On Thursday afternoon, Wilmington Mayor <a href="http://www.starnewsonline.com/section/topic72"><b>Bill Saffo</b></a> praised Krause for righting the agency and moving it in what he called the right direction.</p><p>"That's the tragic part of this whole thing," Saffo said. "He has done a very good job." </p><p>In addition to financial management, Saffo also acknowledged Krause's effort to upgrade public housing, including a massive overhaul of Creekwood South and making improvements at Solomon Towers. Recently, the authority announced it had secured funding to redevelop another aging housing site, Rankin Terrace.</p><p>Still, Saffo said he supported the board's decision to fire Krause, noting that the latest incident came on top of his 2009 arrest.</p><p>"I believe that he left the board no other decision but that decision," the mayor said. </p><p>The board had the power to end its contract with Krause with or without cause. According to the contract, Krause could be fired for cause for multiple reasons: death or incapacity; if he is convicted of criminal conduct other than a misdemeanor traffic violation; if he is absent from work for more than 20 business days without approval; if the board evaluation determines his performance is unsatisfactory; or if he willfully neglects or fails to perform his duties under the agreement.</p><p>Ultimately, the board opted to fire him without cause, which means he is entitled to three months of pay and benefits. His salary for three months would be about $35,000.</p><p>Thursday's closed session was reminiscent of what happened after Krause's 2009 impaired driving arrest. But after that meeting, then-board Chairwoman Lethia Hankins said the board had "complete confidence" in his ability to lead. </p><p>Several weeks after that meeting, Krause received a $15,000 raise, boosting his salary to $125,000, plus a $15,000 bonus. In 2011, the board gave Krause a $17,000 bump, bringing him to $142,000. </p><p>Now that Krause is out, the authority's board has a big job ahead in picking a new CEO, said Saffo, who appoints the board's members.</p><p>"They had some momentum there," Saffo said. "It's going to definitely be a setback, but I hope it's just a bump in the road."</p><p>Krause's Sunday arrest was prompted by a driver who called 911 shortly after 3 p.m.</p><p>In the 911 recording, a man tells a dispatcher that a white Toyota 4Runner was swerving all over the road. The caller follows the SUV along Oleander Drive, Military Cutoff Road and eventually to a house on Windemere Road, where Krause lives.</p><p>The caller initially tells the dispatcher the SUV was on Oleander Drive headed toward Wrightsville Beach.</p><p>"He just almost ran someone else off the road," the caller said. He says the SUV had been swerving toward the center line and the edge of the road.</p><p>The caller followed the SUV onto Military Cutoff Road, where he said the SUV nearly rear-ended another car. Eventually, the SUV turns into a development just north of Mayfaire, when the caller says the driver cut off someone in traffic and almost hit that vehicle. Eventually, the caller followed the 4Runner onto Windemere Road, when he passed the phone to a woman in his car. She said the erratic driver turned off the road at a house.</p><p>Before Krause's arrest on Sunday, Wilmington police officers reported three separate breath-alcohol readings: 0.35, 0.31 and 0.31, according to dispatch logs. The threshold for being considered impaired is 0.08. The tests were taken between 3:51 p.m. and 4:14 p.m., according to the logs, which are written records of communications involving the 911 dispatch center.</p><p>Police officials have said Krause was later administered a blood test, but have declined to release those results until after the court case. Krause was also cited with having no operator's license.</p><p>Krause pleaded guilty to an earlier impaired driving charge in January 2010.</p><p>In 2009, police stopped Krause on Eastwood Road after watching him weaving in the traffic lane and stopping twice for no reason, according to court documents. At that time, Krause registered a 0.23 on a breath-alcohol test, according to the documents.</p><p>In January 2011, Krause pleaded no contest to disorderly conduct in Hancock County, W.Va., according to The Review, an Ohio newspaper. The case was dismissed on a charge of public intoxication, according to the newspaper. He was fined $100 and court costs, it said.</p><p><i></p><p>Julian March: 343-2099</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @julian_march</i></p>